Seed Pods? No ... Euros!
Ok, we saw is coming. Cyprus needs a Bailout. That was last week. Today - Fitch cut Cypress to Junk. I'd link my BB terminal on this if I could, but you'll have to take my word for it.
So no big deal... Right? Not unless you are a Cypriot looking for a lifeline. The gall is that certain ECB and EU upper-echelon players are shrugging this off as a "so what" moment. Arrogance.
Spain asks for formal bailout. Sure - now we have terms!
So the Bailout Tally looks like this so far (in Euros):
Portugal: 85 Billion
Ireland: 113 billion
Greece: 300 billion
Spain: 100 billion (looking more like 165 billion)
Cyprus: 10 billion
Italy could need 1 trillion (and no one is talking about it...)
France is in the same boat as Italy, but France doesn't have the same problem. France is like combining Greece and Italy. France wouldn't matter because if Italy goes then Europe goes.
France and Belgium have taken on the toxic debt of Dexia bank through joint nationalization. They have no plan and its been speculated that they have been sitting on the debt waiting for a moment to dump it (that'll be a long wait) or they have been repackaging the debt back to their Euro Buddies.
The Bail-Out mechanisms are getting depleted. If the they decide to leverage the fund with good ol' Euro debt (face it - it's all toxic), then they will need to induce vomiting immediately.
Germany is not immune and has been obscuring a little "problem" of their own. Back when the wall came down, the re-unification brought on a huge debt problem for new Germany. The Eurogroup then said they would "look the other way" if Germany did them a solid - Join the Monetary Union - thereby castrating the bundesbank... (That didn't work either, but these silly Eurocrats are a stubborn lot!)
The Tragedy of the Euro explains a lot of this mess.
Be warned. The virus has been carried to all parts of the Globe thanks to Spanish Banks (they are everywhere). It is similar to the Sicilian Merchant ships spreading the Plague, where we have Spanish Banks in every corner of the world... I wouldn't be surprised if there is a Santander branch in Antarctica! Possibly a good reason why China has been sidelined...
Next thing is a full blown credit crisis...
The result of the system : Everyone gets bailed-out. The Bailed-out countries get to host Cristine Lagarde for lunch after she is done tanning... No reprieve for the sinners - but we'll see as the Squeaky Greek Wheel is still getting the grease!
As far as the system is concerned - Nigel Farage has been correct :
And in case you had missed it: whenever someone mentions the wonders of the Euro Leaders and how special they are, Nigel Nailed them from the get-go. Europe - you can never be America Junior because we ELECT our idiots to office rather than "accept" them by fiat.